Inverse Finance (INV) Price Prediction

Deep Dive

1. FiRM Adoption & Revenue Growth (Bullish Impact)

Overview: Inverse’s FiRM platform saw TVL hit $158.2M (+37% MoM) and annualized revenue surge to $11.3M (+102%) in July 2025. Borrows rose 27% to $107.4M, while DOLA stablecoin circulation expanded 18%.

What this means: Accelerating protocol usage directly boosts INV’s utility – as governance token and risk capital backstop. Historical data shows INV’s 90-day +112% rally aligns with FiRM’s growth, suggesting continued adoption could sustain upward pressure.

2. Bad Debt Cleanup (Mixed Impact)

Overview: The DAO raised $2.6M via INV token sales (locked 6 months) to reduce bad debt to $3.4M (down from $12M). Remaining debt will be covered via 40acres.finance loans.

What this means: While resolving legacy liabilities (from 2022-2023 exploits) improves balance sheet health, the token sale diluted circulating supply. However, INV traded at a 72% premium to the sale price post-announcement, signaling market approval of the move.

3. DeFi Security Overhang (Bearish Impact)

Overview: An August 2025 $7M exploit at ODIN•FUN reignited concerns about DeFi vulnerabilities, noting Inverse’s own $16M April 2025 SushiSwap breach (CoinMarketCap).

What this means: Repeated sector-wide hacks could deter capital inflows into smaller protocols like Inverse. INV remains 29% below its April pre-hack high of $81.50, showing lingering risk sensitivity.

Conclusion

INV’s trajectory hinges on sustaining FiRM’s growth while navigating DeFi’s structural risks. Short-term technicals lean bullish (price above 200D SMA/$33.92), but the $65.25 Fibonacci resistance could test momentum.

Can Inverse maintain its 102% revenue growth rate through Q4 2025?